Tag Archives: Service Provider License Agreement

Article update: We created a new website called MSCloudlicensing to help SPLA and CSP partners understand the different program options and use rights available to them. The site is designed to be a collaborative platform, which includes a forum to ask and answer licensing questions, document library, and licensing articles. It’s more in depth than a simple blog. Check it out, it’s free! www.mscloudlicensing.com

Here’s a brief rundown with SQL Developer edition and what to be aware of if you decide to deploy it.

It’s free – you can download it for zero costs

It’s a compliance nightmare – When you deploy MAP tool in an audit, the scan typically will reveal a SQL Enterprise installation not SQL Developer edition. Most features of Developer are found in Enterprise which brings on more confusion. If you are audited, you must prove this license is for non-production environments. Which brings us to the next bullet point.

What is a non production environment? Any time you host Microsoft software it is defined as “production.” Whether or not you charge for this access is irrelevant. (Microsoft doesn’t care if you make money off of it). If you do internal development, that’s non production. If you host a dev environment for the benefit of your customer, now that is software as a service and would be considered production.

Microsoft made SQL Development free in 2016. For those that need prior versions, you would need to access them through Visual Studio subscriptions. Again, for non-production environments. Otherwise, you can report Visual Studio through SPLA; per user, per month.

To play it safe, isolate the hardware for any customer’s that want to transfer their free version of SQL Dev to your datacenter environment.

One might ask if it’s free, what’s the penalty if I am found out of compliant? If you were deploying SQL Dev for production use and Microsoft finds out, you would have to true up using SQL Enterprise. In other words, if you installed SQL Dev in 2014, get audited in 2017, Microsoft could force you to true up SQL Enterprise dating back to when you first installed Developer edition. That’s not a very cheap solution!

Is this confusing? Yes. You have to make a decision of whether or not this is production or non-production environment. Do not install SQL Developer because it’s free. It may cost you in the long run.

I wouldn’t think so and wouldn’t know how they could incorporate the two. Azure is Microsoft hosted and SPLA is partnered. Microsoft will want to keep SPLA and Azure separate.

Is Azure Stack part of SPLA?

Azure Stack by itself is not part of SPLA. What’s part of SPLA is the Windows licenses. As a service provider, you could deploy Azure Stack, pay the base consumption rate, and use Windows licensing with SPLA. In fact, I think it’s less expensive to do it this way.

If my customer wants to use their own Windows license on Azure Stack, do they also require CAL’s?

Yes. You need to pay attention to the Product Terms to ensure compliance. As an example, volume licensing prohibits hosting. You cannot install your own Windows licenses through volume licensing and host using Azure Stack.

Does Office 365 qualify for the SAL for SA product in SPLA?

The only Office 365 product that is eligible for SAL for SA is Skype.

Is SPLA pricing going up?

Yes and will not be decreasing anytime soon.

Since AWS offers dedicated hardware, could I transfer my customer’s license to their datacenter without Software Assurance?

Yes. If its dedicated hardware Software Assurance is not required.

What about Azure?

No, you would need Software Assurance.

Will Microsoft finally allow MSDN to be licensed in my datacenter?

Probably not. Although if you use Azure, MSDN is eligible to be transferred.

If I sell CSP through 2-Tier distributor, can I sign the QMTH addendum?

No. You must be CSP 1 – Tier to qualify for QMTH.

Can I outsource support for certain software through CSP?

Yes. You an resell the solutions you can support and leverage another partner for support for other products.

The one thing consistent with Microsoft is change. Attempting to predict what will happen tomorrow is just as difficult as predicting what will happen two years from now. That being said, Microsoft is giving hints as to what the landscape of SPLA and CSP will look like in the not so distance future. Without further delay, here’s my predictions:

Microsoft will increase SPLA pricing at some point. It’s inevitable. See point number 2.

There will be a big push to move SPLA providers to CSP and it’s happening now. CSP pricing is not going up any time soon.

CSP membership will be part of the requirement to join SPLA. Going out on a limb here, but if the goal is to move SPLA to CSP, I think this would be a good way to do it.

CSP requirements will be more streamlined and easier to obtain. See point number 2.

SPLA compliance will increase. See point number 2.

SPLA Resellers will put more focus on CSP than SPLA. See point number 2.

Good news? I think it’s time for SPLAlicensing.com to get a facelift. It’s been several years using the same format. What features would you like to see? What topics interest you? What do you think will happen in SPLA? Email info@splalicensing.com and would love any suggestions.

As we enter the new FY at Microsoft, I thought I would put together a list of topics that’s on everyone’s mind.

SPLA going away? I don’t think so. There’s too many SPLA partners to make an entire program disappear. I also think this is one of the benefits Microsoft has over all it’s competitors. If a customer wants to have an application hosted in one datacenter and use Azure for disaster recovery – Microsoft wins. If Amazon is running Windows workloads (which they are) they must pay Microsoft for that usage through SPLA. I also think SPLA is a way to move customers to Azure. If you are a SPLA customer who just went through an audit, the SPLA customer might ask themselves why they continue to host at all? Let’s use Azure and my compliance problems go away. (they don’t but that’s for another article).

Is CSP/QMH really a must? I guess the jury is still out (it hasn’t even launched yet for the partner community – September 2017). There are a lot of restrictions to this program to consider – underlying Windows Pro licenses, becoming CSP direct authorized, not using CSP Indirect, RDS licenses when deploying VDI, etc. If you decide to go down this route, pay close attention to what you can and cannot do.

Will SPLA pricing increase? Yes. No doubt about it. Nothing stays the same for too long.

How can AWS win the cloud war? Amazon has a revenue first, profit second mentality in my opinion. Just look at their last earnings report (2017). They can buy their way into the SaaS market at any cost. They are not just a cloud company, they are an everything company. They have the leverage to really get creative with their marketing and win businesses over.

How can Google beat AWS and Microsoft? Google hasn’t scratched the surface with their footprint in the enterprise space. One slip up by the other cloud powerhouses and Google becomes a very attractive offering. Google has the power, the money, and the brand to make headway. Like AWS, they are not just a cloud/software company, they are an everything company. I really think Google will surprise a lot of analyst in the near future with their cloud growth.

How can Microsoft beat them all? Any organization that uses Microsoft software in a hosted environment must pay Microsoft for that luxury. They already have a large footprint and very large customer base to move to Azure. They also have 30k + SPLA partners (estimate) that are being used to sell their solution.

Will SPLA Man be able to afford a nice piece of jewelry for Mrs. SPLA Man? For all the single women who read SPLAlicensing.com, don’t make the same mistake Mrs. SPLA Man made. Poor Mrs. SPLA Man, when I first met her at the bar, she thought SPLA was something I created for the space station. Space Program Living Association. S.P.L.A. – kind of like a home owner’s association but for space. (I am not sure where she got that idea). I do have a cool blog??!

The year 2017 has brought on A LOT of change for the hosting community. A hosting company used to be an organization that hosted Exchange – fast forward to today and a service provider takes on a whole new meaning. In this article, we will take a look at defining a service provider and how it applies to licensing. Let’s play a little game called “Do they qualify” Have a question? Email info@splalicensing.com

An organization that provides or extends litigation software (that they leased from the publisher) to law firms and other legal entities who are not wholly owned by the organization providing the solution. Does this organization qualify for SPLA?

Yes. If you are an avid reader of splalciensing.com, you probably read my article on EMR Software The same holds true for any software (not just EMR) that runs on Microsoft technology that you do not own, but lease from a third-party. Remember “AS” If you are providing software AS a service that’s hosted from your datacenter environment, SPLA must be part of the equation. Why does this solution qualify for SPLA?

#1 they don’t own the software they are hosting

#2 they do not own the organization(s) who are consuming (using) the software for their benefit.

An organization who sells a product on a website to external users – do they qualify for SPLA?

No. Although they are selling something to consumers via the internet, the software used to deploy the solution benefits the e-commerce company, not the end-user. Where SPLA does fit is if the web company decides to host a website on behalf of another organization. The web company would fall under the SPLA rules. Who benefits from the access is a key question to ask yourself. Second question – is the access used to run their business or my own?

An organization who provides SharePoint to end users to share information. Do they qualify?

No. Simply sharing information does not qualify. If the organization was hosting SharePoint on behalf of another organization, that’s SPLA.

A company hosts Exchange on behalf of another organization but does not charge for this access. Does this qualify for SPLA?

Yes. Microsoft doesn’t care how much money you make from the solution. The question remains – are you providing this “as a service” for a third-party?

A company decides to use AWS as their datacenter provider to host an application they use internally. Do they need SPLA?

No. In this example, you are the end-user. AWS has a SPLA to cover all infrastructure products they host on your behalf. If you were to use AWS as a datacenter provider to host SharePoint to your end customers employees; you would pay AWS for Windows and SQL and report on your SPLA SharePoint SAL licenses.

I have 25 Linux machines that I host for my customers. Do I need SPLA?

No. You have 25 Linux machines. If you had 24 Linux machines and 1 Windows VM, you would have to license the host machine to cover that Windows VM through SPLA.

My reseller told me I didn’t need SPLA because the access qualifies for Self-Hosted. The auditors told me it does not qualify. Why?

All software used to deploy the solution has to be self-hosted eligible. I bet you are running an application that does not qualify as part of your solution. This would be SPLA. Secondly, if you did not buy the software with software assurance, that is out of compliant.

Good news for those who have customers who want you to host Windows 10 in your shared cloud environment – they might now have that as an option. Microsoft recently announced “Multitenant Hosting Rights for Windows 10. You can read the announcement here

We also created a new website called MSCloudlicensing to help SPLA and CSP partners understand the different program options and use rights available to them. The new website is www.mscloudlicensing.com it’s designed to be a collaborative platform that includes a forum to ask and answer licensing questions, document library, and licensing articles. Check it out, it’s free.

For years SPLA partners have asked for VDI in SPLA. Although this is not technically VDI in SPLA, is does provide an avenue to implement a virtual desktop session from your shared server environment. At the end of the day, it gives your end customers deployment options.

Can I still license Windows Desktop in SPLA?

No. Windows desktop licenses were removed last year. You can read/download the lease agreement that outlines the details here

What are the requirements?

To no surprise, the SPLA partner must be CSP Tier 1 authorized. They must also sign the Qualified Multitenant Hoster addendum and have an active SPLA with Microsoft. To get the QMH (another Microsoft acronym) you can contact info@splalicensing.com or your Microsoft Reseller.

What happens if I offer dedicated environments? Do I still need the addendum?

No. If it is 100% dedicated (isolated hardware) you can always transfer end customer licenses over to your datacenter environment. Whenever it is shared – VM or hardware, you must consider SPLA or in this case the QMH addendum)

When is it available?

Program will be available August 1, 2017 for VL and September 6, 2017 to transact in CSP.

Can I bundle my customers Office solution they purchased as well as Windows 10 to offer a complete VDI experience?

Yes. This is a great way to bundle different desktop applications.

Conclusion

If you provide IaaS to your customers, this is definitely something you should consider. Any time you can offer your customers the ability to leverage existing investments the better. Azure is not going away. In fact, you don’t have to be QMTH authorized to leverage Azure as your datacenter provider. Please review the announcement, there will be a lot more information on this in the coming days. I will also write out several scenarios to make this more simple. As always, you can email me at info@splalciensing.com